International Law Commons^™

The Derivative Market’S Black Sheep: Regulation Of Non-Cleared Security-Based Swaps Under Dodd-Frank, Barry Le Vine

Northwestern Journal of International Law & Business

This paper seeks to comprehensively analyze the SEC's security-based swaps mandate and how it should regulate those non-cleared OTC derivatives within its regulatory ambit to promote market stability, protect counterparties, and reduce the incentives for cross-border regulatory arbitrage which leads to systemic risk creation. It argues that there are many legitimate and compelling reasons for entering into bespoke security-based swap transactions and that imposing collateral and margin requirements would only distort the economics of these trades. It further argues that the SEC should not be in the business of setting margin requirements, which would be an unprecedented move for the …

"You Say Nano, We Say No-No:" Getting A "Yes" Instead For Special Economic Zones In India, Sumeet Jain

Northwestern Journal of International Law & Business

Special Economic Zones (SEZs) have the potential to be valuable in-struments of economic growth and development in India. Yet, as a result of the resistance facing them, SEZs in India have not delivered economic benefits to their fullest potential. For this reason, reducing the resistance facing SEZs is critical to their success. This article seeks to reduce this resistance by devising a consensus-building plan based on a regulatory negotiation approach. The ar-ticle first shows that the past and present resistance facing India’s economic zones is a product of the lack of public input in the design of their policy. It …

The Revolving Door Of Emigration: The Economic Influences Of Remittances In Developing Countries, Laura L. Norris

Northwestern Journal of International Law & Business

Economic incentives play an integral role in many individuals' choices to leave their country of origin. While a person may independently make the decision to migrate, some governments have developed extensive programs to promote the export of workers. Developing nations often initiate such programs for the purpose of acquiring additional sources of foreign exchange and external financing, as emigrants in transnational families can play a critical role in development through remittances. Remittances to developing countries totaled $325 billion in 2010, and they will likely continue to increase along with emigration. The following Comment considers the palpable contribution remittances have on …

Regulation Not Prohibition: The Comparative Case Against The Insurable Interest Doctrine, Sharo Michael Atmeh

Northwestern Journal of International Law & Business

American law requires an insurable interest—a pecuniary or affective stake in the subject of an insurance policy—as a predicate to properly obtaining insurance. In theory, the rule prevents both wagering on individual lives and moral hazard. In practice, the doctrine is avoided by complex insurance transaction structuring to effectuate both origination and transfers of insurance by individuals without an insurable interest. This paper argues that it is time to abandon the insurable interest doctrine. As both the English and Australian experiences indicate, elimination of the insurable interest doctrine will have little detrimental pecuniary effect on the insurance industry, while freeing …

Is Latin American Taxation Policy Appropriate For Promoting Foreign Direct Investment In The Region?, Hugo A. Hurtado

Northwestern Journal of International Law & Business

The purpose of this article is to analyze whether the international tax policy adopted by different Latin American countries is the most appropriate for promoting foreign direct investment and what measures can be adopted by these countries in order to improve such policy. I conclude that an integrated international tax policy would promote greater FDI in the region. To achieve this goal, an analysis of the appropriate tax policy must be delivered to a multidisciplinary body with a presence in the whole region that is able to interact with scholars, private practitioners, and treasury ministries to exchange ideas and adapt …

“Say On Pay”: The Movement To Reform Executive Compensation In The United States And European Union, Marisa Anne Pagnattaro, Stephanie Greene

Northwestern Journal of International Law & Business

In the aftermath of an array of economic failures, there is a growing movement to reform executive compensation. Concerned that executive compensation structures reward inappropriate risk taking and create a short-term perspective, the United States and the European Union are taking steps to reform the ways executives are compensated. Part I analyzes governmental and regulatory action in the United States, including SEC disclosure rules and the Dodd-Frank Wall Street Reform and Consumer Protection Act. Part II details new initiatives in the European Union that recommend changes to remuneration for directors of listed companies and remuneration in the financial services sector, …

Recent Decisions Under The Investment Canada Act: Is Canada Changing Its Stance On Foreign Direct Investment?, Simone Collins

Northwestern Journal of International Law & Business

With the globalization of the world’s economy, countries have relied heavily on foreign direct investment within their borders to spur domestic economic growth and compete in the global marketplace. Canada, historically a leading destination for foreign investors, has seen its share of global foreign direct investment decline steadily over the past several decades. Most recently, Canada has made waves in the global community by taking positive actions to interfere with foreign acquisitions of Canadian entities, despite the Canadian government’s declarations to global competitors advocating free market principles and denouncing protectionist policies. This article discusses Canada’s procedures governing foreign direct investment …

It's A Bird, It's A Plane, It's Jus Cogens!, Anthony D'Amato

Faculty Working Papers

What we require—like the third bowl of soup in the story of the three bears—is a theory of jus cogens that is Just Right. I do not know if such a theory is possible. I don't even know if one is conceivable. But if someone conceives it, that person deserves the very next International Oscar. To qualify for the award, the theory must answer the following questions:

Whales: Their Emerging Right To Life, Anthony D'Amato, Sudhir K. Chopra

Faculty Working Papers

We have contended in this article that the evolution of the opinio juris of nations has encompassed five, and perhaps six, inexorable qualitative stages: free resource, regulation, conservation, protection, preservation and entitlement. We have argued that assigning whales an entitlement to life is the consequence of an emerging humanist right in international law — an example of the merging of the "is" and the "ought" of the law in the process of legitimization

Defending A Person Charged With Genocide, Anthony D'Amato

Faculty Working Papers

I was asked to represent Dr. Milan Kovacevic who had been indicted by the International Criminal Tribunal for Yugoslavia ("ICTY") for complicity in genocide. Had he lived through it, his trial would have been the first by the ICTY for the crime of genocide. I would like to describe some of the tribulations of defending clients accused of grave humanitarian offenses in the ICTY.

Israel's Air Strike Against The Osiraq Reactor: A Retrospective, Anthony D'Amato

Faculty Working Papers

Solarz argued that Israel's air strike "must be considered an understandable and legitimate act of self-defense." The point is that if a war exists between Iraq and Israel, Israel's bombing of the Osiraq nuclear reactor is just a normal and legitimate part of the general conduct of war. Whether or not Israel or Iraq, or both, regarded themselves as being in a state of war, any hostilities between them would amount to separate breaches of the peace in the eyes of the international community and would subject either country to forcible intercession by the U.N. Security Council. I quoted the …

Purposeful Ambiguity As International Legal Strategy: The Two China Problem, Anthony D'Amato

Faculty Working Papers

For every definable term in international law there are clear cases and fuzzy cases. Everyone accepts that the term "state" applies to Paraguay, Poland, Portugal and over a hundred other clear cases, but does it apply to Puerto Rico, Western Samoa, the Isle of Man, the Channel Islands, Gibraltar, or the Vatican City? The word "treaty" has thousands of clear applications, but does it apply to an exchange of faxes between two governments or a handshake between two diplomats at a cocktail party? In addition to ambiguities of this kind, international law is replete with deliberately created ambiguities. One of …

Softness In International Law: A Self-Serving Quest For New Legal Materials: A Reply To Jean D’Aspremont,, Anthony D'Amato

Faculty Working Papers

As international law grows and spreads into non-traditional areas such as the international ecosystem, the global economy, and human rights, some say it is becoming fragmented. This notion can actually appeal to those scholars who want to become experts in a fragment without having the burden of connecting it to the rest of international law. Another group views the idea of isolated specialization with apprehension; they feel that international law is and must be a coherent set of principles and rules—coherent in the sense that no member of the set contradicts any other member. The burden of resolving the tension …

A Few Steps Toward An Explanatory Theory Of International Law, Anthony D'Amato

Faculty Working Papers

If any one sentence about international law has stood the test of time, it is Louis Henkin's: "almost all nations observe almost all principles of international law and almost all of their obligations almost all of the time." If this is true, why is this true? What makes it true? How do nations invent rules that then turn around and bind them? Are international rules simply pragmatic and expedient? Or do they embody values such as the need for international cooperation? Is international law a mixed game of conflict and cooperation because of its rules, or do its rules make …

Is International Law Really ‘Law’?, Anthony D'Amato

Faculty Working Papers

International law is enforced by the process I describe as reciprocal-entitlement violation. The violation may be of the same entitlement or, more likely, of a different entitlement. But it is on the whole an effective process—as effective for the international legal system as is the enforcement of most laws in domestic systems via the state-sanctioned deprivation of one or more entitlements held by individual citizens or corporations. It is impossible to understand why nations do or refrain from doing the things they do without understanding what the entitlements are and how nations act to preserve their full complement of existing …

Three Obstacles To The Promotion Of Corporate Social Responsibility By Means Of The Alien Tort Claims Act: The Sosa Court's Incoherent Conception Of The Law Of Nations, The "Purposive" Action Requirement For Aiding And Abetting, And The State Action Requirement For Primary Liability, David A. Dana, Michael Barsa

Faculty Working Papers

The ATCA could be a powerful tool to promote corporate CSR, especially in developing countries where local legal restraints are weak. But despite the good normative reasons why the ATCA should be used in this way, serious obstacles remain. The Supreme Court's ahistorical and incoherent formulation of the "law of nations" fails to promote the development of the ATCA in ways that would cover even serious environmental harm. Also, the federal courts' confused jurisprudence concerning aiding and abetting and state action creates too many loopholes through which egregious corporate behavior may slip unpunished. In order to overcome these obstacles, we …

International Law And Rawls' Theory Of Justice, Anthony D'Amato

Faculty Working Papers

The complexity of present-day international law stands in an uneasy relation to the scheme of justice propounded by Rawls. The problems facing international lawyers may pose a conceptual threat to some of the fundamental bases upon which Rawls builds his entire theoretical edifice.

"A Guantanamo On The Sea": The Difficulties Of Prosecuting Pirates And Terrorists, Eugene Kontorovich

Faculty Working Papers

As a surge in pirate attacks in the seas around the Horn of Africa threatens to seriously damage international trade, the nations of the world have refused to enforce international law against these criminals. The dozens of nations patrolling the Gulf of Aden have ample legal authority to detain and prosecute pirates. Yet the United States and other navies have, as a matter of policy, been releasing apprehended pirates because of the difficulty of detaining or successfully prosecuting them. These fears are not unwarranted. As this Essay shows, while on the one hand international law requires all nations to fight …

An Empirical Examination Of Universal Jurisdiction For Piracy, Eugene Kontorovich, Steven Art

Faculty Working Papers

This Essay presents the first systematic empirical study of the incidence of universal jurisdiction prosecutions over an international crime. Using data on the number of piracies committed in a twelve year period (1998-2009) obtained from international agencies and maritime industry groups, we determine the percentage of acts of piracy where nations prosecuted under universal jurisdiction we determine the percentage of these cases where nations exercised UJ. Studies of the worldwide use of UJ over other crimes simply count how often UJ has been exercised, but do not attempt to determine the rate of prosecution.

We find that of all clearly …

Is International Law Part Of Natural Law?, Anthony D'Amato

Faculty Working Papers

The affinity of international law to natural law goes back a long way to the classic writers of international law. "Natural law" is the method of dispute resolution based on a conscious attempt to perpetuate past similarities in dispute resolution. "International law" has a deep affinity to this natural law method, for it consists of those practices that have "worked" in inter-nation conflict resolution.

International Human Rights At The Close Of The Twentieth Century, Anthony D'Amato

Faculty Working Papers

Speculates as to why the human-rights revolution is increasingly likely to dominate our foreign-policy attentions in the decades to come. Ventures some predictions, of particular interest perhaps to international lawyers, about where the cause of international human rights is heading.

Israel's Air Strike Upon The Iraqi Nuclear Reactor, Anthony D'Amato

Faculty Working Papers

The destructive potential of nuclear weapons is so enormous as to call into question any and all received rules of international law regarding the trans-boundary use of force. Many of the old rationales for these rules no longer apply. At the same time, the shared values underlying the rules apply more emphatically than ever, for the stake is global survival. I have tried to suggest some of the questions that must be asked about as apparently "simple" an incident as the Israeli attack on the nuclear reactor in Iraq.

Legal And Moral Dimensions Of Churchill's Failure To Warn, Anthony D'Amato

Faculty Working Papers

Churchill had been given at least forty-eight hours' warning that Coventry would be hit. He could have warned the people of Coventry of the impending attack. Yet Churchill determined that any advance warning to the people of Coventry would have enabled the Germans to deduce that their top secret code had been broken. The coded intercepts provided evidence of the Holocaust in progress. Other ways to reveal information that could have by-passed the code system existed, thus providing warning to the public while maintaining a strategic advantage. The international law of genocide would have to develop to go beyond intentional …

State Responsibility For The Exportation Of Nuclear Power Technology, Anthony D'Amato, Kirsten H. Engel

Faculty Working Papers

Should nations that export nuclear power plants to developing countries be potentially liable to the people of those countries for catastrophic accidents? Risk of accident can be reduced if international law compels upgrading of safety design and construction of nuclear plants. Both the international law of state responsibility and an international regulatory agency have roles to play.

There Is No Norm Of Intervention Or Non-Intervention In International Law, Anthony D'Amato

Faculty Working Papers

Comments on Prof. Jianming Shen's position that humanitarian intervention is unlawful under international law and that there is a principle of non-intervention in international law that is so powerful that it amounts to a jus cogens prohibition.

Cross-Country Adoption: A Call To Action, Anthony D'Amato

Faculty Working Papers

Although a free press is an integral part of democratic governance, intercountry adoption is one case in which the media makes it virtually impossible for governments to send children abroad for adoption. A country (State A) which gives up a child for intercountry adoption should receive a "credit" for that child which will entitle any other family within State A that may want to adopt a child to priority on the list at the Vatican. The second major function for the Intercountry Adoption Agency might be called the "annual report" function. All adoptive parents who take a child from the …

Human Rights As Part Of Customary International Law:A Plea For Change Of Paradigms, Anthony D'Amato

Faculty Working Papers

The question for us international lawyers is how, and how much of, public sentiment for human rights has been transformed into binding international law.

International Law From A Machiavellian Perspective, Anthony D'Amato

Faculty Working Papers

Machiavelli leaves one with both an optimistic and a pessimistic prognostication for the post-Cold War world. On the one hand, the end of that conflict has opened the way for the spread of liberal, constitutional regimes, which he would say are inclined to be more and more meticulous in honoring their commitments. On the other, the temptation to use force to create new facts and thereby force international law into new paths will remain as long as politics is practiced. The contemporary relevance of Machiavelli may be seen in that he urged both realities upon us. I focus on a …

The Coerciveness Of International Law, Anthony D'Amato

Faculty Working Papers

This article shows that an important part of the deep structure of international law is its self-referential strategy of employing its own rules to protect its rules. International law tolerates a principled violation of its own rules when necessary to keep other rules from being broken. It extends a legal privilege to states to use coercion against any state that has selfishly attempted to transgress its international obligations. International law thus protects itself through the opportunistic deployment of its own rules.

On Genocide, Anthony D'Amato

Faculty Working Papers

The crime of genocide is the newest international crime. It must be kept as a separate, distinct, and coherent concept. It is the first truly subjective crime; all other crime, though requiring mens rea, require only that the defendant consciously committed the criminal acts. In the case of genocide, however, the underlying criminal acts are no different from the acts required to prove ordinary crimes. The difference is one of motive. What is being punished by the crime of genocide is the selection of victims according to their involuntary membership in four kinds of groups: national, ethnical, racial, or religious. …